UAE Gratuity Calculator 2026
Enter your details below for your exact end-of-service benefit, calculated under Federal Decree-Law No. 33 of 2021.
This free UAE gratuity calculator gives you your exact end-of-service benefit in seconds — based on Federal Decree-Law No. 33 of 2021, Article 51, the law currently governing every private-sector employee in the UAE. Enter your basic salary, join date, and last working day. The gratuity calculator UAE tool above handles the rest: daily rate, gross gratuity, deductions, and net payable — with a full calculation breakdown and a downloadable result. Below is everything you need to understand how the number is calculated, who qualifies, and what happens if your employer doesn’t pay on time.
What is UAE gratuity and why does every expat need this calculator
Gratuity — officially called End-of-Service Benefit (EOSB) or مكافأة in Arabic — is a mandatory lump-sum payment every UAE employer must give to eligible employees when their employment ends. It’s not a bonus. It’s a legal entitlement under federal law, and it applies whether you resign, are terminated, or your fixed-term contract expires.
The uae gratuity calculator 2026 above is built on Article 51 of Federal Decree-Law No. 33 of 2021, which replaced the 1980 UAE Labour Law effective 2 February 2022. The new law made one critical change that most employees don’t know: it removed the old penalty that reduced gratuity when an employee resigned. Under the current law, resignation and termination are treated identically for gratuity purposes — you get the same amount either way, provided you’ve completed at least one year of continuous service.
Limited vs unlimited contract gratuity in UAE — does it still matter?
This is one of the most searched questions about UAE gratuity, and the honest answer is: not anymore. Before February 2022, “limited” (fixed-term) and “unlimited” contracts had different gratuity rules — unlimited contracts carried a resignation penalty that limited contracts didn’t. Federal Decree-Law No. 33 of 2021 abolished both the old contract categories and the penalty attached to them. Since the law took effect, every UAE mainland employment contract is technically a fixed-term contract capped at 3 years and renewable, and gratuity is calculated the same way under Article 51 regardless of what your contract used to be called.
That’s why the calculator above doesn’t ask you to select a contract type — it would change nothing about your result. If an older calculator or HR guide asks you to pick “limited” or “unlimited,” it’s likely still using pre-2022 rules.
How to use this end of service calculator UAE — step by step
Use only your fixed basic salary from your employment contract — not your total package. Exclude housing allowance, transport allowance, commissions, overtime, and bonuses. Under Article 51 of the UAE Labour Law, gratuity is calculated on basic salary only.
The calculator works out your exact service period automatically, including your notice period. If you took unpaid leave, enter those days separately — they’re excluded from continuous service under Article 51(3).
Choose “Resignation / Termination (no misconduct)” for all standard departures. Choose “Gross Misconduct (Article 42)” only if you were dismissed for serious offences such as physical assault, impersonation, or serious breach of safety rules — this results in zero gratuity.
If you have outstanding loans, salary advances, or other amounts owed to your employer, enter the total. The calculator shows your gross gratuity, deductions, and net payable separately.
You’ll see your service period, daily rate, gross gratuity, deductions, and net payable, plus a full step-by-step breakdown. Use “Copy Result” to save the numbers or “Save / Print PDF” to keep a record.
UAE gratuity formula 2026 — Article 51 explained with worked examples
The gratuity calculator Dubai and all other emirates use the same federal formula under Article 51. It has 3 components: the daily wage, the service tier (21 days or 30 days per year), and the 2-year salary cap.
Step 1 — Daily wage: Monthly basic salary ÷ 30.
Step 2 — Gratuity days: 21 days’ basic salary for each year of the first 5 years. 30 days’ basic salary for each year after 5 years. Partial years are calculated pro-rata after the first full year is completed.
Step 3 — Cap check: Total gratuity cannot exceed 24 months’ (2 years’) basic salary, regardless of total service length.
Worked example — gratuity for 2 years of service in UAE
A common question is how gratuity works at exactly 2 years, since it’s short of the 5-year tier change. On a basic salary of AED 7,000: daily rate = AED 233.33. Gratuity days = 21 × 2 = 42 days. Gross gratuity = 42 × AED 233.33 = AED 9,799.86. There’s no proration adjustment needed here because 2 is a whole number of completed years — proration only applies to the fractional part of a year beyond the last full year.
Worked examples — UAE end of service calculator results
| Scenario | Basic Salary | Service | Daily Rate | Calculation | Gross Gratuity |
|---|---|---|---|---|---|
| 1 year service | AED 5,000 | 1 yr 0 mo | AED 166.67 | 21 × 1 × AED 166.67 | AED 3,500.07 |
| 2 years service | AED 7,000 | 2 yr 0 mo | AED 233.33 | 21 × 2 × AED 233.33 | AED 9,799.86 |
| 3 years service | AED 8,000 | 3 yr 0 mo | AED 266.67 | 21 × 3 × AED 266.67 | AED 16,800.21 |
| 5 years service | AED 10,000 | 5 yr 0 mo | AED 333.33 | 21 × 5 × AED 333.33 | AED 34,999.65 |
| 7 years service | AED 6,000 | 7 yr 0 mo | AED 200.00 | (21×5×200) + (30×2×200) | AED 33,000.00 |
| 10 years service | AED 15,000 | 10 yr 0 mo | AED 500.00 | (21×5×500) + (30×5×500) | AED 127,500.00 |
| Cap reached (30yr) | AED 20,000 | 30 yr 0 mo | AED 666.67 | Capped at 24 × AED 20,000 | AED 480,000.00 |
Enter your own figures into the UAE gratuity calculator above to get your exact result instantly, including the 2-year cap and any deductions applied automatically.
Who is eligible for UAE gratuity in 2026
Eligibility under Federal Decree-Law No. 33 of 2021 is straightforward for most private-sector employees. The rules are:
| Condition | Eligible? | Notes |
|---|---|---|
| Expatriate private-sector employee, 1+ year service | ✅ Yes — full gratuity | Article 51, all emirates |
| Voluntary resignation, 1+ year service | ✅ Yes — 100% entitled | New law removed old resignation penalty |
| Termination without misconduct, 1+ year | ✅ Yes — full gratuity | Same formula as resignation |
| Fixed-term contract completion, 1+ year | ✅ Yes — full gratuity | All contracts now fixed-term post Feb 2022 |
| Less than 1 year of continuous service | ❌ No gratuity | Minimum threshold not met |
| Dismissal for gross misconduct (Article 42) | ❌ No gratuity | Forfeiture under Article 42 |
| UAE national private-sector employee | ⚠️ Different scheme | Covered by GPSSA pension, not Article 51 |
| DIFC employee | ⚠️ DEWS scheme | Separate DIFC Employment Law applies |
| ADGM employee | ⚠️ ADGM rules | Abu Dhabi Global Market Employment Regulations |
| Domestic workers (maids, drivers, cooks) | ⚠️ Separate law | Federal Law No. 10 of 2017 applies |
| Part-time / flexible employees, 1+ year | ✅ Pro-rata gratuity | Calculated on hours/days worked under Article 52 |
MOHRE gratuity payment rules — deadlines, deductions, and disputes
Knowing your gratuity amount is only half the picture. Knowing your rights around payment timing, lawful deductions, and dispute resolution is just as important.
The 14-day payment rule — Article 53
Under Article 53 of Federal Decree-Law No. 33 of 2021, your employer must pay your full end-of-service settlement — including gratuity and unused annual leave — within 14 calendar days from your last working day. This is a legal deadline, not a target.
If your employer delays beyond 14 days, don’t sign any final settlement documents until the full amount is in your bank account. You can file a free complaint through the MOHRE official website, the MOHRE app, or a Tasheel service centre.
Lawful deductions from gratuity
Employers can legally deduct only amounts the employee genuinely owes: salary advances, documented employer loans, and court-ordered amounts. They cannot deduct notice period pay or general performance penalties. Use the deduction field in the calculator above to model your net payable.
Gratuity calculator Dubai, Abu Dhabi, and UAE free zones — what’s different
The standard Article 51 formula in the calculator above applies to all mainland UAE employees under MOHRE jurisdiction — Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Fujairah, Umm Al Quwain — and most free zones including DMCC, JAFZA, DAFZA, and ADIB.
Two jurisdictions run separate systems and aren’t covered by this calculator: DIFC, governed by the DEWS savings scheme with monthly employer contributions of roughly 5.83–8.33% of basic salary instead of a lump-sum gratuity, and ADGM, which follows its own Employment Regulations. If you work in DIFC or ADGM, check with HR or an employment lawyer for your specific entitlement.
Using your UAE end-of-service benefits for financial planning
Gratuity is often the largest single lump-sum payment an expatriate receives during their UAE career. On a basic salary of AED 15,000 after 10 years of service, gratuity comes to AED 127,500 — more than 8 months’ total package for many employees.
Voluntary End-of-Service Savings Scheme — Cabinet Resolution 96 of 2023
Since Cabinet Resolution 96 of 2023, UAE mainland employers can voluntarily enrol in an alternative savings scheme where monthly contributions go into regulated investment funds instead of accruing as an employer liability — similar to DIFC’s DEWS. Check with HR whether your employer participates; if not, the standard Article 51 calculation above is what applies.
Tax on UAE gratuity
UAE gratuity is completely tax-free. The UAE has no personal income tax, and gratuity payments aren’t subject to any federal or emirate-level tax.
Frequently asked questions — UAE gratuity calculator
Under Article 51 of Federal Decree-Law No. 33 of 2021: (Basic monthly salary ÷ 30) × 21 days for each of the first 5 years of service, then × 30 days for each year beyond 5. Partial years after the first full year are pro-rated. The total cannot exceed 2 years’ basic salary. Enter your figures into the calculator above for your exact result.
Yes. Under the current law (effective February 2022), employees who resign voluntarily receive exactly the same gratuity as those terminated by their employer, provided they’ve completed 1+ year of continuous service. Dismissal for gross misconduct under Article 42 is the only scenario where gratuity is forfeited.
No. Since Federal Decree-Law No. 33 of 2021 took effect in February 2022, the old distinction between limited and unlimited contracts no longer affects gratuity — both are calculated identically under Article 51. That’s why this calculator doesn’t ask for a contract type; older tools that still do are using pre-2022 rules.
At exactly 2 years, gratuity equals 21 days’ basic salary per year × 2 years = 42 days’ pay. On a basic salary of AED 7,000, that’s a daily rate of AED 233.33 and a gross gratuity of AED 9,799.86. No proration is needed since 2 is a whole number of completed years.
The maximum gratuity payable in the UAE is 24 months’ (2 years’) basic salary, regardless of total years worked. On a basic salary of AED 20,000, the maximum gratuity is AED 480,000 even after 30 years of service.
Basic salary only, per Article 51. Housing allowance, transport, commissions, overtime, and bonuses are all excluded. Using total salary instead of basic salary is the most common calculation mistake.
Under Article 53, employers must settle all end-of-service dues, including gratuity, within 14 calendar days of the employee’s last working day. Late payment exposes the employer to MOHRE complaints and Labour Court proceedings.
No. UAE gratuity is completely tax-free — there’s no personal income tax in the UAE. If you’re a tax resident elsewhere, check with a tax adviser in your home country, as it may be treated differently there.
✅ Why you can trust this UAE gratuity calculator
- ✓Formula sourced directly from Article 51, Federal Decree-Law No. 33 of 2021 — not a third-party estimate
- ✓Cross-checked against MOHRE’s published end-of-service guidance
- ✓Runs entirely in your browser — your salary and personal details are never stored, saved, or sent to a server
- ✓Built and maintained by Shivam, a software engineer who develops and cross-checks every formula against the published law text, and rechecks it whenever UAE labour law changes
Last verified: August 2026. Spotted an outdated figure? Check the FAQ below or let us know.